Barbeque Nation’s a lot-awaited IPO could assist its rival Domino’s parent firm Jubilant FoodWorks double its income in practically two months time. Jubilant FoodWorks, the owner of Domino’s Pizza in India, had invested Rs 92 crore in Barbeque Nation, choosing up shares for Rs 252 apiece in January this year. Now, with the IPO price tag band fixed at Rs 498-500 apiece, Jubilant’s investment could multiply. Barbeque Nation’s Rs 453-crore public challenge opens for subscription tomorrow.
Jubilant FoodWorks to double its income
Ahead of the IPO, Jubilant FoodWorks was amongst investors that have been allotted shares for Rs 252 apiece on a preferential basis in a pre-IPO placement. Jubilant FoodWorks was allotted 36.5 lakh equity shares for Rs 92 crore in January of this year, according to the RHP filed by Barbeque Nation.
In percentage terms, Jubilant FoodWorks now owns a 10.72% stake in the business, generating it the third-biggest shareholder behind promoters SHKSL and Tamara Private Limited. In significantly less than two months considering that the pre-IPO placement, the worth of Jubilant FoodWorks’ stake has doubled to Rs 182 crore at the larger finish of the IPO price tag band. However, it is not identified if Jubilant FoodWorks is searching to sell its gains on listing or hold the stake.
Jubilant FoodWorks operates in the very same business as Barbeque Nation. Among the likes of Burger King India, Speciality Restaurants Limited and Westlife Development, only Jubilant FoodWorks has a positive P/E ratio of 140.05. All other individuals have a damaging P/E ratio. Jubilant is also the only firm operating in the business with a positive return on net worth, according to the RHP filed by Barbeque Nation.
Rakesh Jhunjhunwala amongst investors
Barbeque Nation also counts Rakesh Jhunjhunwala’s Alchemy India as an investor in the firm with a 1.69% stake. Earlier final year, Alchemy India was amongst the shareholders searching to sell its holdings by means of the IPO. Now, Alchemy India has decided against it and will continue to hold its stake till Barbeque Nation tends to make its stock marketplace debut.
The IPO of Barbeque Nation is an amalgamation of a fresh challenge worth Rs 180 crore and the remaining is an provide for sale (OFS) by current shareholders like promoters Sayaji Housekeeping Services. The promoter and promoter group shareholding will come down to 37.79% by means of the IPO whilst public shareholding will improve to 62.21%. Barbeque Nation is searching to raise funds to open new restaurants and repayment of borrowings created by the business.